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Suppose the Dale Corporation must pay $25 million at the end of each of the next 2 years. Bonds are currently yielding 12%. What is

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Suppose the Dale Corporation must pay $25 million at the end of each of the next 2 years. Bonds are currently yielding 12%. What is the present value and duration of this liability? ($42.25,1.47 years) What maturity zero coupon bond would immunize this portfolio? Determine its face value. (1.47 years, $49.9 million)

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